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Property operating expense calculator

Sum operating expenses across categories.

The short answer

$3,000 taxes, $1,000 insurance, $2,000 maintenance, $1,000 utilities and $1,000 management total $8,000 — a 35.088% expense ratio on $22,800 of income.

Operating expenses and expense ratio

Operating expenses = sum of categories. Expense ratio = operating expenses ÷ effective gross income

Total operating expenses
$8,000.00
Monthly average
$666.67
Operating expense ratio
35.088%
Show the arithmetic
  • Sum of categories = 8000
  • Ratio: 8000 ÷ 22800 = 35.088%
Worked example

$3,000 taxes, $1,000 insurance, $2,000 maintenance, $1,000 utilities and $1,000 management total $8,000 — a 35.088% expense ratio on $22,800 of income.

Assumptions
  • Mortgage payments, capital improvements and depreciation are not operating expenses.
  • Annual figures.

Every figure is calculated from the values you entered. Nothing is fetched from market data, and this is general information rather than financial, legal or tax advice.

Formula

Operating expenses = sum of categories. Expense ratio = operating expenses ÷ effective gross income

What you need

  • Property taxes
  • Insurance
  • Repairs and maintenance
  • Utilities you pay
  • Management fees
  • Other operating costs
  • Effective gross income

Worked example

$3,000 taxes, $1,000 insurance, $2,000 maintenance, $1,000 utilities and $1,000 management total $8,000 — a 35.088% expense ratio on $22,800 of income.

Assumptions and units

  • Mortgage payments, capital improvements and depreciation are not operating expenses.
  • Annual figures.

Limitations

Every figure is calculated from the values you enter — nothing is estimated from market data. Real outcomes depend on your state, your lease terms and your property. This is general information, not financial, legal or tax advice.

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